All of the information that you need is on the attached Excel Spreadsheet.

Tip will depends on grade.

Financial Statements Analysis - Final Exam Spring 2016 MG 770-144 YOUR NAME Use the following information about XYZ Plumbing (FY=12/31), a public company with the most recen $5.00, to answer the following three problems: PROBLEM SOLVING Statement of Cash Flows Net Income Adjustments Depreciation and amortization Cash Provided by Operating Assets and Liabilities Accounts Receivable Inventories Pre-paid expenses Accounts payable Accrued liabilities Net Cash provided (used) by operating activities Problem 1 2015 Admin Key Pts 1 1 2 2 2 2 2 2 Cash Provided from Investing Activities Additions to property, plant and equipment Net Cash provided (used) by investing activities 2 2 Cash Provided from Financing Activities Additions to long term borrowing Addition to short term borrowing Net Cash provided (used) by financing activities 2 2 2 Net Cash Flow 2 Total Instructions: 1. All answers go in the YELLOW 2. Make sure your name is written in the first YELLOW shaded box in the "2" row 3. Do not resize, reshape or change any of the boxes on this page. 4. Save this file by adding your name to the end i.e., "Final Exam Answer Sheet - Spring 2016- Mintz" 5. All the information needed is on this sheet and the Information Sheet shaded boxes. 26 company with the most recent closing stock price of Problem 2 Analysis 2015 Admin Key Pts Current Ratio Accounts Receivable turnover Inventory turnover Revenue to Cash Return on Assets Return on Equity Problem 3 1 1 1 1 1 1 Projections 2016E Admin Key Pts Revenue (Increase of 25% from 2015) CGS Gross Profit (Gross Margin increases by 1% from 2015) 1 1 1 SG&A (Improves by 2% from 2015) R&D (Increases by 10% in total dollars) Deprec & Amort (no change) Total Op. Expense 1 1 1 1 Operating Profit 1 Interest cost (given) Interest income (given) Pre-Tax $ $ 800,000 250,000 Tax (35% rate) 1 1 Net Income 1 Total 6 EPS - Basic EPS - Diluted 1 6 Total GRAND TOTAL 18 50 Common Size XYZ Plumbing - Income Statement Revenue CGS Gross Profit $ $ SG&A R&D Deprec & Amort Total Op. Expense Operating Profit $ Interest cost Interest income 2014 10,000,000 4,000,000 6,000,000 20.0% 10.0% 2,500,000 25.0% 650,000 90,000 6.5% 0.9% 19.4% $ $ 1,940,000 679,000 1,261,000 EPS - Basic EPS - Diluted $ 0.13 10,000,000 Diluted Shares Diluted Shares Information Officers and Directors Options Exercise Price 2,000,000 $ 2.00 Publice Warrants Exercise Price 4,000,000 $ 3.00 Stock Price used for calculating Diluted Shares Diluted Shares Calculation Table Basic Shares O&D warrants Public 40.0% 60.0% 2,000,000 1,000,000 500,000 3,500,000 Pre-Tax Tax (35% rate) Net Income Average Shares Outstanding 100.0% $ 5.00 10,000,000 5.0% 35.0% 35.0% 12.6% Total Proceeds Officers and Directors Public Shareholders Total Proceeds Buyback Price Total Shares repurchased Diluted Shares $ 5.00 - Common Size $ $ 2015 15,000,000 6,000,000 9,000,000 Common Size 100.0% $ 40.0% 60.0% $ 2016E 18,750,000 7,312,500 11,437,500 3,000,000 1,000,000 500,000 4,500,000 20.0% 6.7% 4,500,000 30.0% 750,000 150,000 5.0% 1.0% 26.0% $ $ 3,900,000 1,365,000 2,535,000 35.0% 16.9% $ 5,912,500 2,069,375 3,843,125 $ 0.25 $ 0.38 $ $ 10,000,000 3,375,000 1,100,000 500,000 4,975,000 3.3% 30.0% $ 6,462,500 800,000 250,000 10,000,000 - 100.0% XYZ Plumbing - Balance Sheet 39.0% 61.0% ASSETS Cash 18.0% A/R 5.9% Inventory 2.7% Pre-paid expenses 26.5% Total Current Assets 34.5% Building and Improvements 0.0% Equipment 4.3% 1.3% Depreciation 31.5% Net PP&E 11.0% 20.5% Total Assets g - Balance Sheet 2014 2015 3,000,000 1,000,000 2,000,000 500,000 6,500,000 4,585,000 1,500,000 2,300,000 670,000 9,055,000 15,000,000 5,000,000 20,000,000 15,000,000 7,000,000 22,000,000 500,000 19,500,000 1,000,000 21,000,000 26,000,000 30,055,000 2014 2015 500,000 1,500,000 1,000,000 500,000 3,500,000 500,000 1,000,000 1,000,000 520,000 3,020,000 Long-Term Debt 12,000,000 14,000,000 Stockholder's Equity Common Stock at Par Paid in Capital Retained Earnings Total Stockholder's Equity 100,000 9,900,000 500,000 10,500,000 100,000 9,900,000 3,035,000 13,035,000 Total Liabilities + Equity 26,000,000 30,055,000 LIABILITIES Accounts Payable Notes Payable Current portion of LTD Accrued Liabilities Total Current Liabilities